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Universal Display (OLED)
NASDAQ:OLED
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Universal Display
(NASDAQ:OLED)
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Rating:66Neutral
Price Target:
$131.00
▲(10.85% Upside)
Universal Display's overall stock score reflects strong financial performance and strategic growth initiatives, tempered by recent revenue declines and bearish technical indicators. The company's moderate valuation and mixed earnings call sentiment further influence the score.
Positive Factors
Strong Profitability
Universal Display's high profit margins indicate efficient cost management and strong pricing power, supporting long-term financial health.
Strategic Acquisitions
The acquisition of OLED patents enhances Universal Display's technology portfolio, potentially accelerating innovation and competitive advantage.
Cash Generation
Improved cash generation strengthens Universal Display's ability to invest in growth opportunities and weather economic fluctuations.
Negative Factors
Revenue Decline
Declining revenue growth poses challenges to maintaining sales momentum, potentially impacting long-term market position and profitability.
Lower Revenue Guidance
Revised lower revenue guidance reflects potential demand challenges, affecting future growth expectations and strategic planning.
Profitability Decline
Decreased operating margins indicate reduced profitability, which could limit reinvestment in growth and innovation over time.
Universal Display (OLED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.81B
Dividend Yield1.48%
Average Volume (3M)623.12K
Price to Earnings (P/E)26.3
Beta (1Y)1.74
Revenue Growth-0.58%
EPS Growth-6.67%
CountryUS
Employees468
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.92
Shares Outstanding47,542,244
10 Day Avg. Volume436,400
30 Day Avg. Volume623,123
Financial Highlights & Ratios
PEG Ratio3.24
Price to Book (P/B)4.30
Price to Sales (P/S)10.73
P/FCF Ratio32.93
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue9.80
Enterprise Value/Gross Profit12.93
Enterprise Value/Ebitda21.59
Forecast
1Y Price Target
$174.75Price Target Upside47.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)5.01
Revenue Forecast (FY)$657.27M
Universal Display Business Overview & Revenue Model
Company DescriptionUniversal Display Corporation (UDC) is a leading innovator in the field of organic light-emitting diode (OLED) technologies, primarily focusing on the development and commercialization of OLED materials and technologies for use in displays and lighting. The company operates in various sectors, including consumer electronics, automotive displays, and solid-state lighting, offering a range of products such as phosphorescent OLED materials, OLED technologies, and design services that enhance the performance and efficiency of OLED displays.
How the Company Makes MoneyUniversal Display generates revenue primarily through the sale of its proprietary OLED materials and technologies to manufacturers of displays and lighting products. Key revenue streams include the licensing of its patented technologies to various partners, which allows these companies to integrate UDC's innovations into their products while paying royalties. Additionally, UDC earns revenue from the sale of phosphorescent OLED materials, which are essential for high-performance displays. Significant partnerships with major companies in the electronics and automotive industries further bolster its earnings, as these collaborations often lead to long-term supply agreements and increased demand for UDC's products as OLED technology continues to gain traction in various markets.
Universal Display Key Performance Indicators (KPIs)
Universal Display Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment with significant strategic advancements and growth projections in the OLED market, counterbalanced by a decline in revenue, profit, and royalty and licensing fees. While the company is positioned for future growth with new acquisitions and capacity expansions, current financial metrics indicate challenges.Q3-2025 Updates
Positive Updates
Strategic Acquisition of OLED Patent Assets
Universal Display announced a definitive agreement to acquire OLED patent assets from Merck KGaA for $50 million, expected to close in January 2026. This acquisition aims to bolster next-generation OLED performance and accelerate their roadmap for high-efficiency devices.
Strong AI and Machine Learning Platform
The company has built a powerful AI and machine learning platform that is accelerating material discovery, identifying breakthrough compositions faster, reducing development cycles, and expanding the frontiers of phosphorescent OLED.
Growth in OLED Market Projections
OLED IT units are expected to increase by 170%, OLED smartphones by 14%, OLED TVs by 11%, and foldable OLED and automotive markets are projected to nearly triple by 2028. New Gen 8.6 OLED fabs in Korea and China will come online next year, marking a pivotal growth stage.
Expansion into New Markets
Universal Vapor Jet Corporation opened a new global headquarters and R&D center in Singapore, targeting new frontiers including semiconductors, pharmaceuticals, batteries, and photovoltaics, alongside positioning for future opportunities in OLED TVs.
Negative Updates
Revenue and Profit Decline
Third quarter revenue was $140 million compared to $162 million in the same quarter of 2024. Operating income was $43 million, down from $67 million in the prior year, with net income falling from $67 million to $44 million.
Lower End of Revenue Guidance
The company expects full year revenues to be around the lower end of the guidance range of $650 million to $700 million due to timing dynamics and customer pull-ins in the first half of the year.
Decrease in Royalty and Licensing Fees
Royalty and licensing fees were $53 million in the third quarter, down from $75 million in the prior year. This quarter included an out-of-period adjustment of $9.5 million, which reduced royalty and license fee revenues.
Operating Margin Reduction
Operating margin in the third quarter dropped to 31% from 41% in the same period of 2024, reflecting an overall decline in profitability.
Company Guidance
During the third quarter of 2025, Universal Display Corporation reported revenue of $140 million, an operating profit of $43 million, and a net income of $44 million, equivalent to $0.92 per diluted share. Despite the third-quarter revenue being lower than the $162 million from the same period in 2024, the company anticipates full-year revenues to be at the lower end of their guidance range of $650 million to $700 million. The ratio of materials to royalty and licensing revenues is expected to be around 1.3:1 for the year. The third quarter saw total material sales of $83 million, with green emitter sales at $65 million and red emitter sales at $17 million. Operating expenses, excluding cost of sales, were $61 million, while the operating margin was 31%. Universal Display expects full-year operating margins to range between 35% and 40%, with an effective tax rate of 19%. The company ended the quarter with about $1 billion in cash and equivalents and announced a forthcoming dividend of $0.45 per share. Looking forward, the company sees potential growth driven by new OLED capacity coming online and increasing adoption in IT applications.Universal Display Financial Statement Overview
Summary
Universal Display demonstrates strong financial health with high profitability, low leverage, and effective cash management. While revenue growth is stable, the decline in free cash flow growth and slight margin pressures warrant monitoring. Overall, the company is well-positioned in the semiconductor industry with a solid financial foundation.Income Statement
Universal Display shows strong profitability with a high gross profit margin of 76.55% and a net profit margin of 36.94% in TTM. Revenue growth is modest at 2.05% TTM, indicating stable growth. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.75
Positive
Balance Sheet
The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is healthy at 14.87%, showcasing effective use of equity. The equity ratio is strong, suggesting a solid financial foundation with significant equity backing its assets.80
Positive
Cash Flow
Operating cash flow to net income ratio is strong at 1.57, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 12.48% TTM, which could be a concern if it continues. The free cash flow to net income ratio remains solid at 0.73, suggesting effective cash management despite recent declines.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 639.98M | 647.68M | 576.43M | 616.62M | 553.52M | 428.87M |
| Gross Profit | 485.07M | 499.22M | 441.05M | 488.72M | 438.53M | 343.39M |
| EBITDA | 290.38M | 282.94M | 260.59M | 309.38M | 269.61M | 194.71M |
| Net Income | 221.68M | 222.08M | 203.01M | 210.06M | 184.21M | 133.37M |
Balance Sheet | ||||||
| Total Assets | 1.95B | 1.83B | 1.67B | 1.53B | 1.47B | 1.27B |
| Cash, Cash Equivalents and Short-Term Investments | 602.98M | 492.67M | 514.12M | 577.77M | 663.19M | 730.01M |
| Total Debt | 20.36M | 19.14M | 22.86M | 29.04M | 27.26M | 6.88M |
| Total Liabilities | 202.65M | 215.81M | 221.74M | 257.45M | 367.00M | 356.51M |
| Stockholders Equity | 1.74B | 1.62B | 1.45B | 1.28B | 1.10B | 912.71M |
Cash Flow | ||||||
| Free Cash Flow | 161.33M | 211.10M | 28.42M | 79.61M | 147.55M | 120.74M |
| Operating Cash Flow | 214.39M | 253.74M | 154.78M | 126.81M | 191.10M | 148.79M |
| Investing Cash Flow | -82.25M | -164.41M | -83.29M | -280.74M | -457.75M | 391.26M |
| Financing Cash Flow | -90.10M | -82.33M | -72.93M | -64.64M | -51.37M | -41.66M |
Universal Display Technical Analysis
Negative
118.18
Price Trends
131.84
Negative
136.95
Negative
140.46
Negative
Market Momentum
-2.56
Negative
40.18
Neutral
48.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Negative. The current price of 118.18 is above the 20-day moving average (MA) of 117.60, below the 50-day MA of 131.84, and below the 200-day MA of 140.46, indicating a neutral trend. The MACD of -2.56 indicates Negative momentum. The RSI at 40.18 is Neutral, neither overbought nor oversold. The STOCH value of 48.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLED.
Universal Display Risk Analysis
Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $11.50B | 50.31 | 19.66% | ― | 31.05% | 30.35% | |
71 Outperform | $10.66B | 397.82 | 3.86% | ― | -12.03% | -80.99% | |
69 Neutral | $7.35B | 262.23 | 13.39% | ― | 20.60% | ― | |
66 Neutral | $5.81B | 26.29 | 13.30% | 1.48% | -0.58% | -6.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $2.08B | 119.62 | 2.53% | 2.30% | 10.50% | -52.00% | |
52 Neutral | $5.42B | ― | -3.02% | ― | -7.23% | -15.69% |
* Technology Sector Average
OLED
Universal Display
118.18
-42.71
-26.55%
LSCC
Lattice Semiconductor
75.62
12.17
19.18%
POWI
Power Integrations
36.47
-27.08
-42.61%
RMBS
Rambus
94.23
36.82
64.14%
SMTC
Semtech
72.89
7.74
11.88%
ALGM
Allegro MicroSystems
27.11
5.11
23.23%
Universal Display Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Universal Display Reports Q3 2025 Revenue Decline
Negative
Nov 6, 2025
Universal Display Corporation announced its financial results for the third quarter of 2025, reporting a decrease in total revenue to $139.6 million from $161.6 million in the same period of 2024. The company attributed this decline to timing shifts, customer pull-ins, and a one-time adjustment. Despite the drop, Universal Display remains optimistic about future growth opportunities in the OLED industry, focusing on innovation and expanding its market applications. The company also revised its 2025 revenue guidance to the lower end of its previous range and declared a fourth-quarter dividend of $0.45 per share.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.